A Capital Gains Tax for New Zealand

The authors of this work argue that, in order to make the New Zealand taxation system efficient and equitable, a capital gains tax must be put in place. They point out that the historical distinction between 'income' and 'capital' gains, concepts borrowed from other areas of law, bears no distinction to the taxpayer's economic gains or ability to pay. Moreover, the indistinct and easily manipulable border between the two concepts gives rise to many loopholes and avoidance opportunities.